His point is that the company is misrepresenting money promised by the contract; if the contract were actually enforced, the band might completely repay their a

His point is that the company is misrepresenting money promised by the contract; if the contract were actually enforced, the band might completely repay their advance in another five years and be owed money. It's like in The Producers... Whether intentionally or not, the record labels are banking on the fact that people do not look too closely at the accounting of a losing enterprise.